PACR Pacer International, Inc. (MM)

Pacer International, Inc. (Nasdaq:PACR) today announced that its board of directors declared its first-ever quarterly dividend of $0.15 per share of common stock and approved a dividend policy that anticipates an annual dividend of $0.60 per share of common stock, payable in four quarterly increments of $0.15 per share. "Declaring a dividend demonstrates the board's confidence in the company's continued financial strength and commitment to building long-term shareholder value," said Don Orris, chairman and chief executive officer. "We are pleased to announce our plans to use our strong cash flow to return profits to our shareholders, while also continuing to reduce outstanding debt. During the third quarter, we have repaid an additional $16 million in debt, bringing our current debt balance to $108 million. We also expect that the dividend will make Pacer International more attractive to a broader range of investors who share our confidence in the company's future." The initial dividend is payable on October 10 to shareholders of record at the close of business on September 20. Annually, it is anticipated that the company would pay out about $23 million per year in dividends. The declaration and payment of future cash dividends is subject to approval of the board of directors each quarter and the execution of an amendment to the company's Credit Agreement to permit ongoing cash dividends, which the company expects to be completed during the third quarter. ABOUT PACER INTERNATIONAL -- Pacer International, a leading non-asset based North American third-party logistics and freight transportation provider, offers a broad array of logistics and other services through its subsidiaries and divisions to facilitate the movement of freight from origin to destination. Its wholesale services include Stacktrain (cost-efficient, two-tiered rail transportation for containerized shipments) and cartage (local trucking) services, and its retail services include intermodal marketing, truck brokerage, truck services, warehousing and distribution, international freight forwarding, and supply-chain management services. Pacer International is headquartered in Concord, California. Its business units Pacer Stacktrain and Pacer Global Logistics are headquartered in Concord, California, and in Dublin, Ohio, respectively. Web sites: www.pacer-international.com, www.pacerstack.com, and www.pacerglobal.com. CERTAIN FORWARD-LOOKING STATEMENTS -- This press release contains or may contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These forward-looking statements are based on the company's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions. Among the important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are general economic and business conditions; congestion, work stoppages, capacity shortages or weather related issues and service disruptions affecting our rail and motor transportation providers; industry trends, including changes in the costs of services from rail and motor transportation providers; changes in our business strategy, development plans or cost savings plans; the loss of one or more of our major customers; competition; availability of qualified personnel; the frequency or severity of accidents, particularly involving our trucking operations; changes in, or the failure to comply with, government regulations; changes in interest rates; difficulties in maintaining or enhancing our information technology systems; our ability to integrate acquired businesses; terrorism and acts of war; and increases in our leverage. Additional information about these and other factors that could affect the company's business is set forth in the company's various filings with the Securities and Exchange Commission, including those set forth in the company's annual report on Form 10-K for the year ended December 31, 2004 filed with the SEC on March 14, 2005. Should one or more of these risks or uncertainties materialize, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described herein as anticipated, believed, expected or intended. Except as otherwise required by federal securities laws, the company does not undertake any obligation to update such forward-looking statements whether as a result of new information, future events or otherwise. Note to editors: Issued by Steve Potash and Company, tel. 510-865-0800, or steve@potashco.com